The poor little rich kid – one of the most unusual aspects of the boom in wealth creation over the “nice decade” – has collided with the reality of more straitened economic times. Private banks and wealth managers who have been running training courses for the children of the super-wealthy on how to deal with their future wealth are rethinking their approach.

Summer workshops or “bootcamps” have become a popular way for private banks to try to forge relationships with the next generation of wealth owners.

But in the new environment of austerity some banks are questioning the value of these courses. Coutts, Barclays Wealth and Citi Private Bank may not repeat them this year, despite having previously invested considerable time and resources in establishing annual programmes. Merrill Lynch said it was "virtually certain" of running its course.

JP Morgan Private Bank is cutting a five-day investment workshop it usually runs in the summer, although it will retain a three-day wealth planning forum for clients’ children.

Christine Ross, head of financial planning at private bank SG Hambros, says the courses are costly and time-intensive to plan and run, but the bank remains committed to its summer education programme. “Some parents find it very difficult to talk to their children about wealth and inheritance, and vice versa, so having third-party advice is crucial,” says Ross.

With 92% of heirs switching their adviser soon after inheritance, according to research by Morgan StanleyGlobal Wealth Management, there is a strong business case for banks to try to cosy up to their clients’ children.

At their bootcamps, wealth managers run lectures and events designed to both educate the rich kids on investment and financial planning, and showcase the banks’ expertise. Events at exclusive night spots are held in the evenings.

According to Ausaf Abbas, head of sales and marketing at Morgan Stanley Global Wealth Management, the aim is to help the young wealthy develop their own network among peers.

Abbas claims Morgan Stanley’s programme has reaped immediate benefits with parents of attendees awarding the firm a bigger chunk of their wealth to manage after hearing glowing reports from their offspring.

Whether children will want to be indoctrinated by their parents’ adviser is another matter. Brian Clarke, managing director for Key Trust, which has a paid-for education programme for all ages called WealthWise, said: “Young people especially don’t want to feel as though they’re having a product pushed at them. That’s why the independence of Key Trust works so well.”

The fusty image of private banks can also dissuade youngsters from taking education seriously.
Concierge company Quintessentially is launching its finance bootcamp for wealthy youngsters, where a quarter of the programme will be devoted to social events.

The project is a joint venture with public relations company Carte Blanche whose founder, Zoë Couper, has helped a number of private banks set up their in-house programmes. The programme, which has yet to be named, will charge attendees between £6,000 (€6,765) and £8,000 for the week-long course. Barclays Wealth is understood to be in discussions about outsourcing its bootcamp to the venture.